Slide 1: Financial presentation to accompany management transcript
Walmart > |< Financial presentation to accompany management transcript
Slide 2: Safe harbor and non-GAAP measures
Safe harbor and non-GAAP measures This presentation contains statements as to Walmart management's guidance regarding earnings per share and adjusted earnings per share for the fiscal year ending January 31, 2018, Walmart U.S.'s comparable sales and Sam's Club's comparable sales, excluding fuel, for
Slide 3: Guidance
Guidance U.S. FY18 GAAP EPS: Comp sales for 13-week Comp sales for 13-week $3.84 to $3.92 period, excluding fuel1,2: period, excluding fuel1,2: between +1.5% to +2.0% between +1.5% to +2.0% FY18 adjusted EPS2: $4.38 to $4.46 1 13-week period from October 28, 2017 through January 26, 2018, compared t
Slide 4: Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. (Amounts in millions, except per share data) Q3 $ Δ1 % Δ1 YTD $ Δ1 % Δ1 Total revenue $123,179 $5,000 4.2% $364,076 $9,139 2.6% Total revenue, constant currency2 $122,721 $4,542 3.8% $365,866 $10,929 3.1% Net sales $122,136 $4,960 4.2% $360,611 $9,044 2.6% Net sales, constant c
Slide 5: Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. Q3 bps Δ1 YTD bps Δ1 Gross profit rate 25.0% -29 bps 24.9% -13 bps Operating expenses as a percentage of net 22.0% 17 bps 21.5% 16 bps sales Effective tax rate2 33.9% 449 bps 32.9% 231 bps Debt to total capitalization3 NP NP 39.6% 40 bps Return on investment4,5 NP NP 14.7% -30
Slide 6: Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. (Amounts in millions) Q3 $ Δ1 % Δ1 Receivables, net $5,865 $521 9.7% Inventories $50,147 $325 0.7% Accounts payable $47,587 $4,597 10.7% 1 Change versus prior year comparable period. 6
Slide 7: Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. (Amounts in millions) YTD $ Δ1 Operating cash flow $17,060 -$2,721 Capital expenditures $6,908 -$551 Free cash flow2 $10,152 -$2,170 (Amounts in millions) Q3 % Δ1 YTD % Δ1 Dividends $1,526 -1.5% $4,614 -1.5% Share repurchases3 $2,209 57.6% $6,656 6.4% Total $3,735 26.6% $11,270
Slide 8: Walmart U.S.
Walmart U.S. (Amounts in millions) Q3 Δ1 YTD Δ1 Net sales $77,724 4.3% $231,898 3.5% Comparable sales2,3 2.7% 150 bps 2.0% 80 bps • Comp traffic 1.5% 80 bps NP NP • Comp ticket 1.2% 70 bps NP NP eCommerce impact3,4 ~0.8% ~30 bps NP NP Neighborhood Market ~6.0% ~80 bps NP NP Gross profit rate Decreas
Slide 9: Walmart U.S. - quarterly financial highlights
Walmart U.S. - quarterly financial highlights Sales • Net sales increased 4.3%, or approximately $3.2 billion. • Comp sales1 increased 2.7% led by a strong comp traffic of 1.5%. eCommerce contributed approximately 80 basis points to segment comp sales growth. Hurricane-related impacts benefited comp
Slide 10: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp Comments Food and consumables had solid comp sales driven by strong customer traffic, increased innovation, and improvement in private brands. Strength was broad-based across categories, with fresh foods Grocery1 + low single-digit partic
Slide 11: Walmart International
Walmart International Constant Constant (Amounts in millions) Reported currency1 Reported currency1 Q3 Δ2 Q3 Δ2 YTD 1 Δ2 YTD Δ2 Net sales $29,548 4.1% $29,094 2.5% $84,976 -0.1% $86,715 1.9% Gross profit rate Decrease -18 bps NP NP Decrease -10 bps NP NP Operating income $1,249 -7.8% $1,189 -12.2% $
Slide 12: Walmart International - quarterly financial highlights
Walmart International - quarterly financial highlights Sales • Net sales on a constant currency basis increased 2.5 percent. • Reported net sales increased 4.1 percent, which included a benefit of approximately $450 million from currency. • The divestitures of Suburbia and Yihaodian created a headwi
Slide 13: Walmart International - key markets quarterly results
Walmart International - key markets quarterly results Comp3 Gross 1,2 Net Operating Country profit Sales Traffic Ticket sales3 3 income3 rate United Kingdom4 1.1% -1.4% 2.5% 3.6% Decrease Decrease Walmex5 7.0% 0.3% 6.7% 6.6% Decrease Increase Canada 1.0% 1.0% Flat 1.9% Decrease Decrease China 2.5% -
Slide 14: Walmart International - key market quarterly highlights
Walmart International - key market quarterly highlights Walmex • Net sales increased 6.6 percent and comp sales increased 7.0 percent. Normalizing for Suburbia sales last year, net sales would have increased 9.2 percent. • Operating income grew at a faster rate than sales. • In Mexico specifically,
Slide 15: Walmart International - key market quarterly highlights
Walmart International - key market quarterly highlights U.K. • Net sales increased 3.6 percent, while comp sales increased 1.1 percent. • We continued to see improved results as customers responded to investments in the value proposition. • During the quarter, we experienced improved in-store servic
Slide 16: Sam's Club
Sam's Club With fuel Without fuel1 With fuel Without fuel1 (Amounts in millions) Q3 Δ2 Q3 Δ2 YTD Δ2 YTD Δ2 Net sales $14,864 4.4% $13,584 3.2% $43,737 3.2% $40,218 2.2% Comparable sales3 4.0% 330 bps 2.8% 140 bps 2.8% 360 bps 1.9% 120 bps • Comp traffic NP NP 3.6% 410 bps NP NP NP NP • Comp ticket N
Slide 17: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Sales • Comp sales1 for the period increased 2.8% with growth in comp traffic of 3.6%. The company estimates a benefit to comp sales of approximately 70 to 90 basis points from recent hurricanes. • Market inflation in food positively impacted comp sales by
Slide 18: Sam's Club - quarterly category highlights
Sam's Club - quarterly category highlights Category Comp Comments Fresh / Freezer / Cooler + mid single-digit Strong performance in fresh meat, produce, bakery and prepared foods. Water, breakfast bars and an expanded premium assortment in certain categories delivered Grocery and beverage + low sing
Slide 19: Third-party FCPA- and compliance-related expenses
Third-party FCPA- and compliance-related expenses Q3 YTD (Amounts in millions) FY18 FY17 FY18 FY17 Ongoing inquiries and $2 $24 $22 $68 investigations Global compliance program and 3 5 11 14 organizational enhancements Total $5 $29 $33 $82 • In fiscal year 2018, we expect our third party FCPA- and c
Slide 20: Non-GAAP measures - ROI
Non-GAAP measures - ROI We include Return on Assets ("ROA"), which is calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP") as well as Return on Investment ("ROI") as measures to assess returns on assets. Management believes ROI is a meaningful measure to share
Slide 21: Non-GAAP measures - ROI cont.
Non-GAAP measures - ROI cont. The calculation of ROA and ROI, along with a reconciliation of ROI to the calculation of ROA, the most comparable GAAP financial measure, is as follows: Wal-Mart Stores, Inc. Return on Assets and Return on Investment Trailing Twelve Months Trailing Twelve Months Ended E
Slide 22: Non-GAAP measures - free cash flow
Non-GAAP measures - free cash flow We define free cash flow as net cash provided by operating activities in a period minus payments for property and equipment made in that period. We had net cash provided by operating activities of $17.1 billion and $19.8 billion for the nine months ended October 31
Slide 23: Non-GAAP measures - constant currency
Non-GAAP measures - constant currency In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the operating results for all countries where the functional currency is not the U.S. dollar ("non-USD entities") into U.S. dollars. We
Slide 24: Non-GAAP measures - fuel impact
Non-GAAP measures - fuel impact The net sales, gross profit rate and operating income of Sam's Club for the three and nine months ended October 31, 2017, the percentage changes in those financial measures from the respective comparable prior year period, comparable sales of Sam's Club and Walmart U.
Slide 25: Non-GAAP measures - fuel impact cont.
Non-GAAP measures - fuel impact cont. The table below reflects the calculation of the Sam's Club fuel impact for net sales and operating income for the three and nine months ended October 31, 2017 and 2016. Three Months Ended October 31, Nine Months Ended October 31, (Dollars in millions) 2017 2016
Slide 26: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS The adjusted diluted earnings per share from continuing operations attributable to Walmart (Adjusted EPS) for the three- and nine-month periods ended October 31, 2017 is considered a non-GAAP financial measure under the SEC's rules because the Adjusted EPS for each s
Slide 27: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS We have calculated Adjusted EPS for the nine months ended October 31, 2016 by adjusting EPS for the amount of the impact of the gain from the sale of Yihaodian in China. Adjusted EPS for the nine months ended October 31, 2016 is a non-GAAP financial measure. The most
Slide 28: Non-GAAP measures - adjusted EPS guidance
Non-GAAP measures - adjusted EPS guidance Adjusted EPS Guidance is considered a non-GAAP financial measure. Management believes that Adjusted EPS Guidance for Fiscal 2018 is a meaningful metric to share with investors because that metric, which adjusts EPS for certain items to be recorded in the per
Slide 29: Additional resources at stock.walmart.com
Additional resources at stock.walmart.com • Unit counts & square footage • Comparable store sales • Terminology • Fiscal year 2018 earnings dates 29